A(n) ________ is a sharp decline in asset prices that forces borrowers to sell off additional assets, further depressing prices:

The current account balance is equal to

A) exports - imports - net interest + net transfers. B) exports - imports + net interest + net transfers. C) imports - exports + net interest - net transfers. D) exports - imports - net interest - net transfers. E) imports - exports + net interest + net transfers.

Refer to Figure 12-7. If the market price is P3 the firm

A) will earn enough revenue to cover its variable costs but not its fixed costs. B) will break even. C) will make a profit. D) will produce a quantity of Q1.